Kinetic Concepts Gets Higher Takeover Bid

Kinetic Concepts receives a takeover bid from competitor ConvaTec that tops the terms of an agreement the wound-care company reached last month, a report says.

NEW YORK ( TheStreet) -- Kinetic Concepts ( kci), a wound-care company, received a takeover bid from competitor ConvaTec that tops the terms of an agreement the company reached last month.

ConvaTec, owned by private-equity firms Nordic Capital and Avista Capital Partners, has letters supporting the bid from Goldman Sachs and Jefferies Group, two people told Bloomberg. The letters say the banks are "highly confident" financing for the transaction is available, the people said.

Kinetic Concepts last month agreed to be bought by funds advised by Apax Partners, and affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board, for $68.50 a share in cash, or $6.3 billion including debt.

Under the terms of the agreement with the Apax group, Kinetic could actively solicit other offers for 40 days, a period that ended Sunday, Bloomberg noted.

Shares of Kinetic Concepts were rising in premarket trading Monday after the company received a takeover bid from competitor ConvaTec that tops the terms of an agreement the company reached last month.